Buy to Lets x 2 (Does it mean double the costs)?

barneybeagle

Hi All,

If I want to raise 2 x Buy to Let mortgages, does it mean 2 x Estate Agent Fees, 2 x Surveyors fees, 2 x Solicitors fees (what else have I missed).

I'm hearing different things and the Estate agent I visited wanted £500 for each B2L and reckons the Solicitors fees would be £1000 for each of them.

Is this the norm or is their a lot cheaper on the market elsewhere?

Ideally on 2 x B2L mortgages what should I be expecting to pay (rough ball park figure)?

Any advice, as always most appreciated.
Cheers
bb

holly_hobby

You don't pay estate agent fees if you are the purchaser.

As you are purchasing 2 separate properties, this requires 2 sets of individual conveyencing fees (although the conveyencer may agree to a combined sum for the 2 re their own professional costs), and 2 different mortgages - then yes of course you can not avoid 2 sets of fees.

Re solicitor fees, ring round a few for some quotes.

Re buy to let mortgages, their fees and payrates are higher than residential mortgages due to their semi-commercial basis - a whole of market mge broker would be advised, as apart from guidance and adivce, they will allow you access to lenders whom only offer BTL via intermediaries.

Hope this helps

Holly

G_M

Buying a property is ... buying a property. What you do afterwards (live there or let it out) does not alter the purchase process other than choice of mortgageproduct.

barneybeagle wrote: »

Hi All,

If I want to raise 2 x Buy to Let mortgages, does it mean 2 x Estate Agent Fees,
For what? buying? No EA fees.
For letting management? Yes, if you choose to use an agent fo thlettings
2 x Surveyors fees,
Yes, if you choose to do 2 surveys
2 x Solicitors fees (what else have I missed).
Yes, if you are buying 2 properties

I'm hearing different things and the Estate agent I visited wanted £500 for each B2L and reckons the Solicitors fees would be £1000 for each of them.

Is this the norm or is their a lot cheaper on the market elsewhere?

Ideally on 2 x B2L mortgages what should I be expecting to pay (rough ball park figure)?

Any advice, as always most appreciated.
Cheers
bb

Not sure if you are asking questions about purchase costs (not much difference between residential and BTL other than the mortgage eligibility and rates...

or letting costs, which are a whole seperate issue for which you need to read:

New Landlords (information for new or prospective landlords)

theartfullodger

barneybeagle wrote: »

...



Ideally on 2 x B2L mortgages what should I be expecting to pay (rough ball park figure)?

...

Quite a lot per month & £3,451:78 fees.

Do you own the properties already??

What LTV are you looking at??

How much are the properties worth & what rent/month are you reasonably expecting for both???.... You may be surprised to hear fees may vary between a £2.5Mill deal & one for £121k....

Weird that eh??

Do you have £25k+ pa declared non-property income reported for the last few years to HMRC???

Is this your 1st B2L??

Cheers!

thelem

You might only need one set of local searches if both are in the same block

barneybeagle

Hello and thanks for all the replies. Further to my initial post which now looking at it I should have provided more details.
Here goes:

We are moving house
The house we are moving out of we intend to rent (it is nearly paid off).
I own another property outright which I currently rent out.
To raise capital to purchase the house we are moving into then as well as the deposit I've been told I can take money out of each of my other two properties and these will become buy to lets and the house we are moving into will hopefully be paid off.

The other option I've been told about is to get a residential mortgage on the house we are moving out of which we intend to rent out. Now I believe this is a 'grey' area? I want to use the interest part of any mortgage to offset my tax return at the end of the year, but have been told if it is a residential mortgage I cannot do this. However, I know of people that do and they don't appear to think this is not right. Is their some kind of issue with Underwriters etc?

Hope this info makes things a little clearer?

Thanks in advance
bb

geoffky

Mortgage_Knowlodge wrote: »

I think you need to speak to an independent mortgage broker as there are lots of different options for you to consider, some with high fees, some with no fees. Buying 2 or even more if you can will really maximise your income and make the most of the capital you have to invest. Recently I have helped a few people increase their portfolios this way!

Your post smacks of touting for business on here,
Reported...

barneybeagle

Hello Geofky,

I can guarantee you that I am certainly not touting for business. What I have asked for is genuine and can't see where you think that? Your opinion so be it.

Cheers
bb

G_M

barneybeagle wrote: »

Hello Geofky,

I can guarantee you that I am certainly not touting for business. What I have asked for is genuine and can't see where you think that? Your opinion so be it.

Cheers
bb

Geofky was not referring to you. Read his post to see the reference!

G_M

Mortgage_Knowlodge wrote: »

I think you need to speak to an independent mortgage broker as there are lots of different options for you to consider, some with high fees, some with no fees. Buying 2 or even more if you can will really maximise your income and make the most of the capital you have to invest. Recently I have helped a few people increase their portfolios this way!

M_K

All of your posts tout for business.

reported.

AlexMac

barneybeagle wrote: »

Hello and thanks for all the replies. Further to my initial post which now looking at it I should have provided more details....
To raise capital to purchase the house we are moving into ...I've been told I can take money out of each of my other two properties and these will become buy to lets ...The other option I've been told about is to get a residential mortgage on the house we are moving out of which we intend to rent out. Now I believe this is a 'grey' area? I want to use the interest part of any mortgage to offset my tax return at the end of the year, but have been told if it is a residential mortgage I cannot do this. However, I know of people that do ...Is their some kind of issue with Underwriters etc?

Hope this info makes things a little clearer?

Thanks in advance
bb

I see now that you want to maximise the tax by offsetting as much mortgage interest as poss against income. I'm no expert, but I'm guessing that if you have a loan secured on either or both of the rental properties that's fine and the only issue will be getting the lender 's agreement, as I assume they'll be unhappy if you let it behind their back. I'm sure the tax man will be OK with it, as there will be a clear relationship between the loan and the BTL .

We've done something more complicated- re mortgaged the family home to free up cash for a BTL- There's a clear audit trace to the BTL purchase, so we feel justified in claiming the interest off income on our self-assessment (and are, in effect saving the taxman dough, because the residential mortgage is cheaper than a BTL one). Enough equity in the home so we're not on a risky tightrope either.

And as regards the OP Qs about costs- yes- 2 purchases means a mortgage set up/survey fee on any new loan (£300-£1.8k?) and 2 sets of solicitors' conveyancing costs. You can find cheap conveyancers, but I always reckon on at least £1k on a solicitor (including essential fees, but not SDLT- which won't be much if you buy cheap) as you need a decent lawyer. Our kids' recent vendor chose a cheapie and got burned.

We saved a few hundred on our last BTL by instructing the solicitor just to do the Local Authority search but not to do added searches (environmental, Plan-search Plus, Chancel Check...) which they otherwise might automatically commission in these risk averse times.

Otherwise it'll just be the costs of a Gas Safety check, any letting agents' fees and any essential refurbishment...

good luck